The Full Belmonte, 11/4/2022
New York Judge Imposes Monitoring Requirements on Trump Business Operations
Court order came in response to request from New York Attorney General Letitia James, who has brought civil-fraud claims
A judge said Thursday that New York’s attorney general had presented abundant evidence to support her contention that Trump’s family business had engaged in fraud.PHOTO: SPENCER PLATT/GETTY IMAGES
“A New York judge on Thursday required that Donald Trump’s family business be subject to monitoring requirements while it is facing a civil-fraud lawsuit from New York Attorney General Letitia James.
State Supreme Court Justice Arthur Engoron said that given what he called ‘persistent misrepresentations’ by the Trump family’s business in its financial statements over the last decade, ‘the appointment of an independent monitor is the most prudent and narrowly tailored mechanism to ensure there is no further fraud or illegality.’
The ruling came hours after the first public court hearing in Ms. James’s lawsuit, filed in September. The attorney general, a Democrat, alleged Mr. Trump, three of his adult children and his company generated $250 million in ill-gotten gains by engaging in a decadelong scheme to falsely value their assets. Mr. Trump provided false and misleading asset valuations to banks and insurers that inflated his net worth by billions of dollars, she alleged.
Justice Engoron said Ms. James had presented dozens of pieces of evidence to support her contention that the Trump family business had engaged in fraud, suggesting her case was likely to succeed on the merits. He pointed to evidence that Mr. Trump had exaggerated the size and inflated the value of a three-floor apartment in Trump Tower and said in financial statements that a dozen rent-restricted apartments appraised at $750,000 were worth $50 million.
Justice Engoron said the Trumps’ lawyers ‘have failed to submit an iota of evidence, or an affidavit from anyone with personal knowledge, rebutting’ the attorney general’s ‘comprehensive demonstration of persistent fraud.’
‘Today’s decision will ensure that Donald Trump and his companies cannot continue the extensive fraud that we uncovered,’ Ms. James said after the ruling.
New York Attorney General Letitia James has alleged that fraudulent practices have continued since she filed her lawsuit.PHOTO: BRITTAINY NEWMAN/ASSOCIATED PRESS
A spokeswoman for the Trump Organization said, ‘Today’s decision sets a dangerous precedent for government interference in private enterprise and is an obvious attempt to influence the outcome of the upcoming election.’
The Trumps have called the accusations politically motivated, and on Wednesday the former president sued Ms. James in a Florida court, seeking an order that would bar her from accessing and disclosing a trust that details Mr. Trump’s estate plans.
Mr. Trump in a statement called Thursday’s decision ‘ridiculous’ and unprecedented. ‘Businesses will be fleeing New York, which they already are, for other states and other countries,’ he said.
Ms. James has alleged that Mr. Trump and his company have continued to engage in fraudulent practices since she filed her lawsuit, and said that on the day the suit was filed the Trump Organization registered a new entity incorporated in Delaware, Trump Organization II LLC, with the New York secretary of state.
Justice Engoron’s hearing Thursday focused on Ms. James’s request for a preliminary injunction that would bar the company from submitting Mr. Trump’s financial statements to insurers and lenders and prohibit the company from transferring or disposing of assets without court approval. Her office asked the judge to appoint an independent monitor while the case was pending to ensure the Trump Organization followed those rules.” Read more at Wall Street Journal
Paul Pelosi Leaves San Francisco Hospital After Attack
The husband of Nancy Pelosi, the House speaker, returned home six days after being beaten with a hammer by an assailant who targeted his wife.
“Six days after suffering a fractured skull in a vicious attack, Paul Pelosi, the husband of Speaker Nancy Pelosi, has been discharged from the Zuckerberg San Francisco General Hospital.
Mr. Pelosi, 82, is resting at home, recovering from the injuries to his head, arm and hand. He spent most of his time at the hospital in the intensive care unit, according to a person familiar with the matter.
‘The Pelosi family is thankful for the beautiful outpouring of love, support and prayers from around the world,’ Ms. Pelosi said in a statement. ‘Paul is grateful to the 911 operator, emergency responders, trauma care team, I.C.U. staff and the entire Z.S.F.G.H. medical staff for their excellent and compassionate lifesaving treatment he received after the violent assault in our home.’
She added that her husband ‘remains under doctors’ care as he continues to progress on a long recovery process and convalescence. He is now home surrounded by his family who request privacy.’” Read more at New York Times
Is Trump preparing his 2024 campaign?
“Former Republican President Donald Trump told a crowd in Sioux City Thursday that he ‘will very, very, very probably’ run in 2024. Trump was in Iowa to help boost Republican candidates ahead of next week’s midterm elections, appearing with Gov. Kim Reynolds, U.S. Sen. Chuck Grassley and others. But he quickly diverted attention back to himself, launching once again into his unproven claims of voter fraud, endorsing same-day voting and paper ballots that he said would ‘save a lot of money’ and promising to ‘make America great again.’ The Associated Press reports his team is tentatively looking at a campaign launch just after the conclusion of the midterms. Read more at USA Today
Early voters fill electronic ballots at the Northern Kentucky Convention Center in Covington, Ky., on Thursday, Nov. 3, 2022.Sam Greene, Cincinnati Enquirer-USA TODAY NE
The Twitter logo on the exterior of Twitter headquarters in San Francisco.
“Elon Musk will begin laying off Twitter employees this morning, according to a memo sent to staff, as several employees sue the billionaire alleging the layoffs are in violation of labor law. An email sent Thursday evening notified employees that they will receive a notice by 12 p.m. ET today that informs them of their employment status. The memo comes after previous reports said Musk had planned to lay off up to half of the company's staff after acquiring it last week for $44 billion. Twitter had around 7,500 employees prior to Musk's takeover. He started his tenure at Twitter by firing its CEO and two other executives, according to two people familiar with the decision. Musk also dissolved Twitter's former board of directors.” Read more at CNN
Massive wintertime layoff surge
Illustration: Gabriella Turrisi/Axios
“Layoff and hiring freezes are cascading across tech, after a record boom lulled many employers and employees into a false sense of security.
Why it matters: In statement after statement, companies warn they're preparing for dire times.
Twitter today is taking the extreme step of locking its offices and suspending employees' badge access, as new CEO Elon Musk begins mass layoffs expected to cut deep into the platform's 7,500 employees.
In an ominous email to staff, Twitter said cuts will begin at noon ET: ‘In an effort to place Twitter on a healthy path, we will go through the difficult process of reducing our global workforce on Friday.’
Internal plans earlier this week had Musk looking to cut 3,700 Twitter staff, or about half the workforce, Reuters reports.
The email said employees not laid off will find out via their work email. Staff who are losing their jobs will be notified with next steps to personal email addresses.
What's happening: During the past decade, tech workers got used to high salaries, plush benefits and tons of opportunity. Workers in other industries were paying a heavy price for the pandemic. But tech continued to prosper, Axios' Scott Rosenberg says from the Bay Area.
So it's still a little hard for most people in Silicon Valley, and the wider tech industry, to get their heads around just how tough times could be getting for them.
Tons of layoffs and freezes are being announced or leaked as companies race to prepare for bleak months ahead:
Amazon announced a ‘pause on new incremental hires in our corporate workforce," citing the "unusual macro-economic environment.’ (Read the memo.)
Lyft said it will lay off about 680 employees, or 13% of staff, and blamed inflation and the slowing economy. Co-founders Logan Green and John Zimmer told staff of ‘the tough reality.’
Stripe CEO Patrick Collison said the payments company will lay off 14% of its workforce, returning to February's headcount of 7,000: ‘We were much too optimistic about the internet economy's near-term growth ... and underestimated ... a broader slowdown.’ (Read the memo.)
Apple has paused hiring for many jobs outside R&D.(Bloomberg)
CNN Worldwide employees are expecting layoffs after chairman and CEO Chris Licht warned in a memo last week of ‘unsettling’ changes in light of ‘widespread concern over the global economic outlook.’” Read more at Axios
Oprah's November surprise
“Oprah Winfrey, who made Dr. Oz famous, instead is supporting Democrat John Fetterman in Pennsylvania's epic U.S. Senate race, Axios'
‘If we do not show up to vote ... the people who will be in power will begin making decisions for us,’ Oprah said on a ‘Virtual Voting Conversation’ she hosted.
‘Decisions about how we care for our bodies, how we care for our kids, what books your children can read, who gets protected by the police and who gets targeted.’” Read more at Axios
FBI warning: Threat to N.J. synagogues
Police in Hoboken, N.J., guard United Synagogue of Hoboken yesterday. Photo: Ryan Kryska/AP
“FBI Newark tweeted that it ‘has received credible information of a broad threat to synagogues’ in New Jersey:
The alert was posted after an online threat directed broadly at synagogues in the Garden State — no specific location was threatened, a law enforcement official told AP.
Some municipalities sent extra officers to guard houses of worship.” Read more at Axios
Stunning poll: 44% see ‘secret cabal’
Data: Benenson Strategy Group. Chart: Axios Visuals
“Joel Benenson of Benenson Strategy Group, the renowned pollster for President Obama's 2008 and 2012 campaigns, gave Axios AM readers a first look at the results of a question he'd never asked before:
‘We wanted to test QAnon's language that the world is controlled by a secret cabal. Given that the U.S. is the world's strongest democracy, we wanted to see how far the appeal of language like that might reach.’
44% of registered voters said they believe it.
The figure is especially arresting because of this result in the same poll:
59% of voters agree that the U.S. is a strong democracy.
The breakdown: 66% of Democrats ... 55% of Republicans ... 54% of independents.” Read more at Axios
“Health officials are reinforcing their recommendations for people to get flu vaccines as this year's strain picks up its pace across the US. There have been at least 880,000 cases of influenza, nearly 7,000 hospitalizations and 360 deaths from the flu so far this fall -- including one pediatric death --according to data from the CDC. The numbers also show there haven't been this many cases of influenza so early in the season since 2009. After recently receiving Covid-19 vaccines and boosters, some people have been waiting until later in the season to get the flu vaccine, CNN Medical Analyst Dr. Leana Wen said. However, since it takes about two weeks to reach optimal immune protection after receiving a flu vaccination, people who haven't gotten one yet should do so now.” Read more at CNN
Doctor who performed abortion for a 10-year-old rape victim sues Indiana AG
“Dr. Caitlin Bernard, who attracted national attention after she told IndyStar, part of the USA TODAY Network, that she provided an abortion to a 10-year-old rape victim, is suing to stop Indiana Attorney General Todd Rokita from allegedly relying on ‘frivolous’ consumer complaints to issue subpoenas over confidential medical records. The lawsuit comes months after Bernard's attorney Kathleen DeLaney said they received a letter about an investigation by Rokita's office into complaints against the doctor. Her attorneys say the complaints were submitted by people who saw news stories about Bernard after the IndyStar story describing the 10-year-old patient went viral. No one claimed to have received care by either Bernard or Caldwell.” Read more at USA Today
Dr. Caitlin Bernard, a reproductive healthcare provider, speaks during an abortion rights rally Saturday, June 25, 2022, at the Indiana Statehouse in Indianapolis. The rally was led by the ACLU of Indiana following the Supreme Court's decision to overturn Roe v. Wade, ending the constitutional right to an abortion. Jenna Watson/IndyStar
January 6
“The House select committee investigating the January 6, 2021, insurrection at the US Capitol has interviewed more Secret Service witnesses, including the head of former Vice President Mike Pence's detail. The committee is also expected to interview at least another half dozen Secret Service witnesses in the coming weeks, including current and former officials and agents, multiple sources told CNN. The panel's efforts to secure testimony from an expanding list of current and former agents during the closing months of its probe shows the committee is intensifying its push to learn more about what the Secret Service knew about looming threats to Pence and other government officials ahead of the attack.” Read more at CNN
Exclusive emails: Inside Trump's botched Georgia fight
Photo illustration: Sarah Grillo/Axios. Photo: Tom Williams/Roll Call/Getty Images
“Late on the night of Jan. 6, 2021, as the world reeled from the shocking images of a pro-Trump mob ransacking the U.S. Capitol, conservative activist and Trump legal adviser Cleta Mitchell focused her attention elsewhere — on a crumbling voter fraud lawsuit in Georgia that could open the door to criminal exposure.
Axios' Jonathan Swan and Zachary Basu obtained dozens of previously undisclosed emails from the time period covering Dec. 30, 2020, to Jan. 8, 2021.
Why it matters: The emails shed new light on the internal machinations, pressures and disagreements at the heart of the unprecedented legal battle to keep a defeated president in power.
The big picture: The central question of what then-President Trump and his lawyers knew when he signed sworn court documents attesting to false evidence of voter fraud in Georgia is now under scrutiny by the Justice Department, Atlanta prosecutors and the House Jan. 6 committee.
Two lawyers advising Trump were revealed over the past several weeks to have raised concerns about the president signing the verification, which carried the penalty of perjury. The new emails show a third, Bruce Marks, also expressed concern but was overruled.
The emails also reveal new granularity about the role of Mitchell, who since then has collaborated with the Republican Party to build an activist base of national ‘election monitors’ — many of whom will be out in force in Tuesday's midterms.
Zoom in: The legal discussions on the night of Jan. 6 about Georgia involved Trump himself and consideration of how to minimize exposure from the botched lawsuit and attestation.
‘I spoke with POTUS and he said do the best we can,’ Mitchell wrote in an email time-stamped 9:36 p.m. ET, to Trump campaign lawyers Justin Clark and Matthew Morgan.
The nation's capital was under citywide curfew. The House and Senate had just resumed debating objections to Joe Biden's Electoral College victory.
Screenshot of email from Cleta Mitchell to Boris Epshteyn, obtained and redacted by Axios
What's next: Mitchell has over the past 18 months redoubled her efforts and established herself as a central player in the nationwide network of Trump-allied lawyers and activists who are laying the groundwork to monitor and contest future elections.
Mitchell's project, called the Election Integrity Network, is run out of the Conservative Partnership Institute, an influential D.C.-based think tank stocked with former senior Trump administration officials.
In a sign of how important Mitchell's efforts are to Trump, the former president, who is loath to share his PAC's money, authorized a $1 million donation to CPI. This was by far the Trump committee's largest donation to political allies in the second half of 2021.
Mitchell told Axios in a statement: ‘Any assertion that we are seeking to overturn future elections is a complete fabrication. There's not a word in any of our materials saying this is about 'overturning elections.' We aren't saying that. We aren't doing that.’
Read the full story: Frustrations among the warring factions of outside lawyers clinging to Trump and the dream of a second term bubbled to the surface in the dying hours of 2020.” Read more at Axios
Student loans
“President Joe Biden's student loan forgiveness program remains on hold while a federal appeals court considers a legal challenge brought by six Republican-led states. The Biden administration is still accepting applications for student loan forgiveness, which is worth up to $20,000 per borrower, but it is not currently allowed to cancel student loan debt until the hold is removed. The Biden administration is also facing lawsuits from an attorney general and conservative groups that claim he does not have the legal authority to broadly cancel student loan debt. As for what happens next, an appeals court will decide whether to grant a preliminary injunction requested by the states. If granted, the student loan forgiveness program could be kept on hold while the court hears from both parties. If it's not granted, debt cancellation may begin while the appeal plays out. The ruling could come at any time.” Read more at CNN
Brittney Griner
“US Embassy officials visited detained WNBA basketball star Brittney Griner in Russia on Thursday and ‘saw firsthand her tenacity and perseverance despite her present circumstances,’ State Department spokesperson Ned Price said in a statement. They had not been able to visit Griner since early August but spoke with her by phone last month. After months of internal debate, the Biden administration previously offered to exchange a convicted Russian arms trafficker serving a 25-year US prison sentence as part of a potential deal to secure the release of Griner and Paul Whelan, who has been detained in a remote prison camp in Russia on espionage charges since 2018. US officials say they have continued to follow up on their offer and emphasized that the Americans' detentions remain a top priority.” Read more at CNN
The US economy added 261,000 jobs in October while unemployment jumped to 3.7%
“The US economy added 261,000 jobs in October and the unemployment rate ticked up to 3.7%, according to the latest monthly employment snapshot from the Bureau of Labor Statistics, released Friday morning.
The total job gains were lower than the revised September number of 315,000, and above the 200,000 forecast from economists surveyed by Refinitiv.” Read more at CNN
Twitter sued by former staff as Elon Musk begins mass sackings
Ex-employees say they were not given enough notice under US federal law over job losses
“Twitter is facing a class action lawsuit from former employees who say they were not given enough notice under US federal law that they had lost their jobs, finding out they had been let go when they were locked out of their work accounts on Thursday.
In a company-wide memo, staff were informed on Thursday that they would receive an email to their personal email accounts if they were being fired as part of the mass sackings at the platform in which up to half of the company could go.
Before those emails arrived, dozens of staff began posting on Twitter that they had been fired – after discovering they were no longer able to access their work email accounts or log into their work laptops.
Musk’s plans to cut up to 3,700 staff may hit a roadblock, however, after a lawsuit was filed in the US federal court in San Francisco seeking orders for Twitter to comply with the federal Worker Adjustment and Retraining Notification Act, which requires 60 days’ notice for mass sackings at large employers.
The lawsuit, brought on behalf of five Twitter employees so far, says one was fired on 1 November, while three were not informed at the time of filing but had been locked out of their email accounts.
The case cited a similar situation with sackings at Musk’s other company, Tesla, where the company sought to obtain full release from its obligations under the Warn Act by offering severance of one or two weeks’ pay instead.
‘Plaintiffs here are reasonably concerned that, absent court intervention, Twitter will engage in similar behaviour and seek releases from laid-off employees without informing them of their rights or the pendency of this case,’ the filing stated.
The lawsuit was first reported by Bloomberg.
After finalising the $44bn purchase of Twitter, Musk fired several top Twitter executives, including the chief executive, Parag Agrawal, the finance chief, Ned Segal, and the legal affairs and policy chief, Vijaya Gadde.
The job cuts are part of an overhaul of the social media platform as Musk attempts to make it profitable after his purchase. Musk has also directed Twitter’s teams to free up $1bn in annual infrastructure cost savings by slashing funding for cloud services and servers.” Read more at The Guardian
Election officials are preparing for voter intimidation and threats at polling sites.
“Americans will cast ballots Tuesday to determine which political party controls Congress, and state election overseers are wary of what the day will (and won’t) bring. In advance, they are explaining that vote-counting delays aren’t evidence of fraud, setting up a text-messaging service for poll workers to report disruptions and reminding poll-watchers not to follow voters or photograph their license plates.” Read more at Wall Street Journal
DOJ takes down catalytic converter theft ring
Victor Hilitski/Chicago Tribune/Tribune News Service via Getty Images
“Wednesday, the Justice Department arrested 21 individuals suspected of operating a nationwide catalytic converter theft ring.” (Vox) Read more at CBS News
“Law enforcement executed search warrants and seizures in nine states, recovering millions in cash, homes, and cars in an unprecedented crackdown.” (Vox) Read more at Los Angeles Times / Gregory Yee
“Catalytic converters help reduce harmful emissions from cars. The devices contain precious metals like rhodium and platinum and pull in $1,000 each at scrap yards.” (Vox) Read more at Fox Business / Paul Best
“Officials say 15 defendants bought stolen converters and shipped them to New Jersey, where the precious metals were extracted and sold to a refinery in a $545 million scheme.” (Vox) Read more at NPR / Ayana Archie
“The suspects now face charges including conspiracy to commit money laundering and conspiracy to receive the stolen catalytic converters.” (Vox) Read more at The Hill / Olafimihan Oshin
“Bank of England Governor Andrew Bailey said the economic turmoil hitting the UK this year is worse than anything in the 1970s. The remarks may underscore why the central bank is signaling a more cautious approach to interest rates than the US Federal Reserve. On Thursday, the BOE raised its benchmark lending rate at the sharpest pace in 33 years, but pushed back on market expectations for rapid increases going forward. In the US, markets were mostly lower after Fed Chair Jerome Powell warned of more rate hikes Wednesday.” Read more at Bloomberg
Andrew Bailey Photographer: Hollie Adams/Bloomberg
Benjamin Netanyahu and his wife, Sara.Amit Elkayam for The New York Times
“Benjamin Netanyahu is about to return to power as Israel’s prime minister, despite unresolved corruption charges against him.” Read more at New York Times
Germany’s Scholz urges Xi to exert influence on Russia
“BEIJING (AP) — In a much-scrutinized meeting Friday with President Xi Jinping in Beijing, German Chancellor Olaf Scholz urged China to exert its influence on Russia, while the Chinese leader repeated a call for talks between Moscow and Ukraine and warned against the conflict going nuclear.
Scholz is in Beijing for a one-day visit that has drawn criticism over China’s tacit support for Russia, lingering controversies over economic ties and human rights issues, as well as the timing of the trip.
It comes after Xi further cemented his authoritarian rule at a major Communist Party congress last month and as China continues to refuse to criticize Russia.
Scholz’s visit reflects the importance of Germany’s trade ties with China, the world’s second-largest economy, particularly in the auto and manufacturing sectors. Mercedes Benz alone sold 758,863 cars in China last year, more than in any other country, according to company figures.” Read more at AP News
Qatar Makes Final Preparations for World Cup
“More than 1 million soccer fans will descend on Qatar later this month for the 2022 FIFA World Cup, although Doha’s hosting dreams—and this year’s tournament—have long been tainted by reports of human rights abuses and bribery.
With just weeks to go before the competition kicks off, authorities are now in the final push to perfect sweeping, years-long infrastructure projects. The country is believed to have spent anywhere between $220 and $300 billion dollars on its construction plans, funneling both vast sums of money and migrant workers into new highways, colossal stadiums, and luxurious hotels.
But from the start, the decision to hold the World Cup in Qatar was controversial—especially after the United States accused Doha and Moscow of buying off FIFA executives. With construction underway, human rights groups have also sounded the alarm over migrant working conditions and other abuses.
Ahead of the competition, Qatar appears to have stacked its stadiums with a sympathetic audience, offering soccer fans free tickets, flights, and lodging in exchange for a performance and pledges that they will steer clear of criticism. To ensure compliance, the fans must agree to a contract that requires them to make positive posts and ‘report any offensive, degrading or abusive comments’ on social media.
Authorities have also evicted thousands of workers living in Doha—plausibly to make room for tourists—leaving some to sleep on the streets, Reuters reported. Human Rights Watch has documented how officials have continued to arbitrarily detain, beat, and sexually harass LGBT people through September.
Qatar is one of many countries with a poor human rights record to host a popular and high-profile tournament. From Russia to China, countries with histories of abuses have long used international sporting events to attempt to elevate their global profiles.” Read more at Foreign Policy
“Imran Khan is shot. An armed gunman shot and wounded former Pakistani Prime Minister Imran Khan in the legs while he was leadinga rally on Thursday. Khan was ousted from power in April. His camp has blamed Pakistan’s current leadership for planning the attack.” Read more at Foreign Policy
“North Korea’s intensifying missile tests. North Korea fired six missiles on Thursday, just one day after it launched 23 missiles in an escalating spate of tests that alarmed its neighbors. Japanese authorities warned some people to seek shelter on Thursday.
The barrage also prompted a sharp warning from Washington. ‘Any nuclear attack against the United States or its Allies and partners, including the use of non-strategic nuclear weapons, is unacceptable and will result in the end of the Kim regime,’ said Defense Secretary Lloyd Austin.” Read more at Foreign Policy
“Ukraine’s displaced civilians. Approximately 14 million Ukrainians have been displaced by the war in Ukraine, pushing up the total number of globally displaced people and refugees past 103 million, according to the United Nations. U.N. High Commissioner for Refugees Filippo Grandi called it the ‘the fastest, largest displacement witnessed in decades.’” Read more at Foreign Policy
“South Sudan’s food insecurity. The United Nations has warned that two-thirds of people in South Sudan could be in a state of acute food insecurity once the country enters its next lean season. ‘Humanitarian assistance is needed to save lives and prevent the total collapse of livelihoods in the country,’ said Josephine Lagu, South Sudan’s agriculture minister.” Read more at Foreign Policy
“Citadel’s Ken Griffin, Blackstone’s Steve Schwarzman and Oracle’s Larry Ellison—worth a collective $150 billion—are among the 12 top political donors ahead of the midterm election. Of that dozen, 10 are backing Republicans in a big way: They’ve spent a cumulative $338 million, up 250% from the 2018 cycle. Already, spending in the 2022 race has shattered records. Meanwhile, days before the election, Facebook and Twitter are letting 2020 election fraud lies go viral.” Read more at Bloomberg
“Lives Lived: Hannah Pick-Goslar befriended Anne Frank in kindergarten in 1933 and appeared in her diary. They last spoke 12 years later through a barbed-wire fence at a concentration camp. Pick-Goslar died at 93.” Read more at New York Times